Refer to the scenario above. Which of these activities has the least slack?

Which of the following would be an addition to net income when using the indirect method to derive net cash flows from operating activities?

a. Payment of cash dividends b. Decrease in accounts payable c. Increase in merchandise inventory d. Loss on sale of machinery and equipment

The equilibrium exchange rate of pounds is $1.70 . At an exchange rate of $1.72 per pound, U.S. demand for pounds would ________ the supply of pounds for sale and there would be a _______ of pounds in the foreign exchange market

a. exceed; shortage b. be less than; shortage c. exceed; surplus d. be less than; surplus e. be equal to; shortage